How to Buy a Hair Salon Franchise
The hair care industry is a booming business in the US. With a niche for every American--men, women, children, and yes, even pets, hair care is a $50 billion industry and growing. Buying into a hair salon franchise can be worth the investment if researched well. Here's what to consider when buying into one.
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Instructions
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Look at the market. Decide what type of niche you would like to cater to, whether it is men, women, children or all three. Evaluate whether you would like to branch into other services such as nails, waxing, tanning and other full service options to include certain spa treatments or services or if you would offer a theme such as SportClips.
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Determine what you're willing to invest. Start up costs vary depending on the hair salon and niche you'd like to franchise. For example, a Fantastic Sam's initial development costs for the first 12 months can range anywhere from $100,500 to over $230,000 or more, depending on the region, with $60,000 of that being your own funds.
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Choose your location. As with any franchise opportunity, location is key. Do your research to see whether there is a need where you'd like to set up shop and if there is availability. You want to be sure not to buy into a franchise that may not economically make sense in a certain area. For example, you wouldn't want to place a Cool Cuts for Kids in an area that's demographically made up of college students or elderly people.
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Complete the necessary paperwork. Depending on the franchise you choose, the procedure will vary on what the franchiser will need from you. Be prepared to complete a detailed application or questionnaire and provide asset and net worth information.
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Opt for an established salon. If you're concerned with initial start up costs on a new salon and concerned about the risk involved, choosing an established salon may be a good alternative. The previous owner has taken the initial hit on location, and as many franchisee owners do eventually sell off their businesses, you can easily move in and take over a successful franchise. For a complete listing of franchise opportunities, visit the Franchise Advantage website (see Resources), click on "Health, Beauty, Nutrition" under "Franchise Industries," then "Hair Salon and Spa" to see what's available.
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Tips & Warnings
Consider the services of a franchise attorney, who can help you move through the process successfully.
